Your Wealth Is Determined By Your Habits

Your Wealth Is Determined By Your Habits


its all about habits


The reason why very few people achieve wealth is because they don’t develop the habits that build wealth.

As we already know, the formula is so simple and fully proven yet many failed to achieve wealth because of not taking action on the right formula. The key is to learn how to create more income then save a portion of it and the remaining will be allotted for expenses. Many people do the reverse instead, saving on what will be left, and more often than not, nothing has been left always.

The formula should be:

Income less Savings equals Expenses

Instead of:

Income less Expenses equals Savings

You need to save at least 10% of your income at the start and increase it later on. Saving a portion of your income is not enough to build wealth. It is only the first step and you need to make sure that this will grow and multiply.  A simple way to make it grow is to invest it in an investment vehicle that grow and multiply through time. There are a lot of investment vehicles out there but my suggestion is through the stock market. US Billionaire Warren Buffet, one of the richest man in the world and one of the greatest investor that ever lived, used the stock market in making his company Berkshire Hathaway one of the most valued company in the world. You might think that investment in the stock market is risky, but you know what, if you invest long term, in a good and stable company, the value of your stocks investment will grow long term. Invest in a company that you think can be there in 50-100 years. As a matter of fact, if you invest long term, you don’t care whether the market is up or down. If it’s down, stocks is lower so it’s an opportunity to buy stocks at low price. If the stocks are up, then, it means to say, that you’re stocks are earning. In the Philippines, stocks performed well more than other investment vehicle even real estate.

This is one of the ways you can build your wealth through time. Now, the question is, how can you form the habit of saving and investing? Many people earn a lot but barely save a portion of their income. Why is that?

Majority of people do not save and invest because they are not focus on building wealth. Their mindset are not set in accumulating wealth. Building wealth is not their priority because if it is, then, someone will study and learn how to do it until it becomes a habit on his part.
The habit of savings is very important to develop. Without it, whether you earn a lot, you’ll end up spending also all that you earned.


You can form the habit by doing it consistently everyday without fail. As they say, it will take around 21 days straight before you develop a habit. The most important thing to do is to know your why, your reason why do you want to build wealth. It is your deeper why that ultimately make you move into action in creating the habit of success.


Thank you very much for reading my article. May God bless you more in all areas of your life.

Hi, I’m Ralf Roger Tagao, a CPA & Real Estate Broker. My passion is reading books about business, success, leadership and all other motivational books that help me develop myself more. I love to share my ideas, knowledge and learnings to other people that I think will benefit them.